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The following guest post is courtesy of Jens Chrzanowski, Regional German Director at FCA regulated broker Admiral Markets UK.
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We all go through periods in life where we don’t get what we want. Unfortunately, it happens! As a trader, sometimes there’s nothing more annoying than periods of low volatility, i.e. when there’s not much fluctuation in prices. These ‘black-spots’ are probably nothing new to you.
If you’re anything like me, then you’re probably already desperate to see some higher volatility this year, so you can get back to trading as soon as possible! We all know that it’s just a matter of time, but what can you be doing while you wait? Other than just sitting there and twiddling your thumbs…
The answer is simple: it’s not all about Forex! Most brokers don’t only offer access to the foreign exchange market, they also offer CFDs too. Sometimes it doesn’t make any sense to be totally, blindly focused on trading currency pairs, there’s simply not enough in it for you. Why not check out what’s going on with other instruments, you might find something far more exciting there.
In the last few months one of the most traded instruments globally at Admiral Markets was the DAX30, the German index based CFD. This instrument seemed to go up and down like a yo-yo at times, offering plenty of trading opportunities along the way. It’s not just DAX though, both Brent and Gold have been on the move recently and, since Mr. Trump’s election, the US Dow Jones index has shown an interesting up trend.
At Admiral Markets we have an education section where we present daily or weekly analysis and other ideas. I can guarantee that if you go there, you won’t only find articles or analyses about EUR/USD. We always try to focus on whatever index shows the most volatility at any given time, that’s our job! So, I can speak from experience when I say that there’s a lot more opportunity to trade beyond Forex, you just have to look for it.
…Sometimes, you really have to look for it!
Brokers don’t make it easy. Their websites are always littered with sayings like: “Everyday Trading Opportunities”, attempting to grab your attention with the potential of daily returns. But we rarely see slogans or campaigns referencing everything that’s on offer, e.g. indices, commodities, stock CFDs, etc. It would be nice to see brokers also telling traders to turn their attention toward the big movers, regardless of their type. If it’s Forex, great! But if it’s the Dow Jones or WTI, also great!
Don’t get me wrong, Forex will always be the biggest market in our industry. All I’m saying is that it’s not the only one, far from it. Having a little variety and trying something different, especially in times of low Forex volatility, just makes sense. I don’t mean trying it just for a day or a week, I mean committing yourself to trading something new for a continuous period.
Sticking to what you know is all well and good, but sometimes it’s also cool to think outside the box. So, why not set yourself a challenge to check out some other instruments? You might be surprised with what you find.
Until next week!
Do you have feedback, concerns, requests, likes? I’d love to hear! Contact me via: [email protected].
Trading on margin carries a high level of risk, and this article should not be seen as advice or solicitation to buy or sell, but written for informational purposes.